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Wednesday, October 9, 2013

Synaptics' new acquisition could bring fingerprint readers to most laptops

If you hadn't heard, fingerprint readers are in voguethese days. Synaptics clearly knows it: the company just acquired Validity,
a firm that specializes in finger-based authentication. The $92.5
million deal gives Synaptics both access to the biometric market as well
as a complement to its existing touchinputdevices.
While the company isn't detailing its plans, it's easy to see the
potential impact. When Synaptics makes the majority of laptop trackpads,
there's a real chance that fingerprint sign-ins on PCs could become commonplace.

SAN JOSE, Calif. – October 9, 2013 Synaptics Inc. (NASDAQ: SYNA),
a leader in human interface solutions, today announced it has signed a
Definitive Agreement to acquire Validity Sensors, Inc., a leading
provider of biometric fingerprint authentication solutions for
smartphones, tablets and notebook PCs. With the acquisition of Validity,
Synaptics expects to gain access to the fast growing biometrics market,
significantly expanding its market opportunity and underscoring the
company's commitment to making smart devices easier to use.

Biometrics and fingerprint sensing is poised for explosive growth
as OEMs look to differentiate their products, and consumers demand
greater security with seamless ease-of-use. Synaptics believes the
acquisition of Validity positions the company at the forefront of this
exponential growth opportunity and allows the company to strengthen its
portfolio of touch-based technologies with the diversification into
fingerprint-sensing capabilities.

"Biometrics has long been of interest to Synaptics as it
complements our existing touch-based solutions and offers an exciting
new way to interact with devices," said Rick Bergman, President and CEO,
Synaptics. "We are thrilled to be adding the world class Validity team
to the Synaptics family. This acquisition is a significant step forward
for the company and serves as a proof point of our dedication for
continued growth, innovation and commitment to providing the industry's
best and broadest portfolio of human interface solutions."

"Synaptics' acquisition of Validity puts our vision of having
Natural ID on every mobile computing device on the fast track," said Rob
Baxter, CEO, Validity. "The opportunity for our people, our
shareholders and our technology, along with Synaptics' commitment to
owning the human interface, made this partnership a natural fit. The
acquisition adds Validity's world-class biometrics engineering team to a
Synaptics team known for in-depth, system level engineering expertise."

Synaptics will pay approximately $92.5 million in stock and cash
at the closing plus potential performance payments over a multi-year
period for total potential consideration of up to $255.0 million. The
stock component is expected to be in the range of 1.5 million to 2.3
million shares. The acquisition is expected to close in the current
quarter, subject to customary closing conditions and regulatory reviews,
as necessary. Additional details can be found in Synaptics' Current
Report on form 8-K, filed October 9, 2013.